Question:
Big Pizza, a Province wide pizza chain, has a new promotional campaign. It guarantees that all pizzas will be delivered within 30 minutes or they will be free. While this promise is readily kept in small cities and towns, it places considerable stress on franchises in large urban areas. Franchisees are required by their franchise agreement to pass on this stress to drivers by fining them half of the cost of any pizza not delivered within the requisite time. To overcome this threat, drivers often are forced to drive well above the speed limit. A driver, attempting to meet the deadline, fails to notice another vehicle in its path and collides with it seriously injuring the passengers in that vehicle. Assuming the issue of negligence by the driver is clear-cut and that the driver is an employee, can the injured persons claim damages from the franchisee for the actions of the employee? Why? Is there any argument that Big Pizza has itself been negligent? Present arguments for both sides of the case and determine whether liability will be upheld.